MARKETING STRATEGY
O.C. FERRELL • MICHAEL D. HARTLINE
6
Market Segmentation, Target
Marketing, and Positioning
Market Segmentation Strategies (1 of 2)
• Traditional Approaches to Market
Segmentation
– Mass Marketing
– Differentiated Marketing
• Multisegment Approach
• Market Concentration Approach
– Niche Marketing
6-2
Mass Marketing Strategy
From Exhibit 6.1 (1 of 4)
6-3
Multisegment Strategy
From Exhibit 6.1 (2 of 4)
6-4
Market Concentration Strategy
From Exhibit 6.1 (3 of 4)
6-5
Niche Marketing Strategy
From Exhibit 6.1 (4 of 4)
6-6
Discussion Question
• Can you think of a product that could be
marketed effectively using a mass
marketing approach? If so, explain and
justify your answer. If not, what types of
changes would have to be made to the
product to make it appropriate for a mass
marketing approach?
6-7
Multisegment Approach
6-8
Market Segmentation Strategies (2 of 2)
• Emerging Approaches to Segmentation
– One-to-One Marketing
– Mass Customization
– Permission Marketing
• Criteria for Successful Segmentation
–
–
–
–
–
Identifiable and Measurable
Substantial
Accessible
Responsive
Viable
6-9
Discussion Question
• Many consumers and consumer advocates
are critical of the one-to-one marketing
approach due to personal privacy concerns.
Marketers counter that one-to-one
marketing can lead to privacy abuses, but
that the benefits to both consumers and
marketers far outweigh the risks. Where do
you stand on this issue? Why?
6-10
Bases for Segmenting
Consumer Markets
• Behavioral Segmentation
– Segments based on actual behavior or product usage
• Demographic Segmentation
– Segments based on demographic factors (e.g., gender,
age, income, education, etc.)
• Psychographic Segmentation
– Segments based on state-of-mind issues (e.g., motives,
attitudes, opinions, values, lifestyles, interests,
personality, etc.)
• Geographic Segmentation
– Segments based on geographic location
6-11
Marketing Strategy in Action
• Demographic segmentation
strategies, such as the one
utilized in this Virginia Slims
advertising campaign, are
common because their ease of
use and measurement.
• What are the limitations of
demographic segmentation?
What can marketers do to
compensate for these
limitations?
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VALS
6-13
Benefit Segmentation of
the Snack Food Market
Exhibit 6.4
6-14
Discussion Question
• What are some of the ethical and legal
issues involved in targeting sensitive groups
such as children and seniors?
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Bases for Segmenting
Business Markets
•
•
•
•
•
Type of Organization
Organizational Characteristics
Benefits Sought or Buying Processes
Personal and Psychological
Relationship Intensity
6-16
Target Marketing Strategies
• Five basic strategies for target market
selection:
– (1) Single Segment Targeting
– (2) Selective Targeting
– (3) Mass Market Targeting
– (4) Product Specialization
– (5) Market Specialization
6-17
Basic Target Marketing Strategies
Exhibit 6.6
6-18
Differentiation and Positioning (1 of 2)
• Relative perception
• Process of creating favorable relative position:
– (1) Identification of target market
– (2) Determination of needs, wants, preferences and
benefits desired
– (3) Examination of competitors’ characteristics and
positioning
– (4) Comparison of product offerings with competitors
– (5) Identification of unique position
– (6) Development of a marketing program
– (7) Continual reassessment
6-19
Differentiation and Positioning (2 of 2)
• Differentiation Strategies
– Product Descriptors
• Product features
• Advantages
• Benefits
– Customer Support Services
– Image
• Positioning Strategies
– Strengthen the Current Position
– Repositioning
– Reposition the Competition
6-20
Using Product Descriptors
for Product Differentiation
Exhibit 6.7
6-21